India’s capital markets regulator Sebi on Friday approved a wide range of reforms to expand market participation, simplify processes and enhance investor protection. The decisions were taken at its board meeting, with measures spanning IPO norms, foreign investor access, mutual funds, and oversight of market intermediaries, PTI reported.Key highlights of Sebi’s decisions:
- Easier IPO route for large firms: Minimum public offer size lowered for very large companies, with more time allowed to meet minimum public shareholding requirements.
- Anchor investors’ allocation raised: Share of anchor investors in public issues increased from one-third to 40%.
- Single-window access for trusted investors: Low-risk foreign institutions such as sovereign wealth funds, central banks and regulated global institutions to get simplified market entry.
- FPIs in IFSCs: Retail schemes in International Financial Services Centres (IFSCs) with Indian sponsors or managers can register as foreign portfolio investors (FPIs).
- AIF framework eased: New category of Alternative Investment Funds (AIFs) created for accredited investors, with relaxed regulations.
- Lower threshold for large value funds: Minimum ticket size for accredited investors reduced from Rs 70 crore to Rs 25 crore.
- REITs reclassified: Real Estate Investment Trusts (REITs) to be treated as equity for mutual funds and specialised investment funds, while InvITs remain hybrids.
- Boost for MF distributors: Incentives of up to 1% for inflows from beyond the top 30 cities, plus additional commission for investments from women.
- Governance strengthened: Framework for registrars to be reviewed, with amendments approved for investment advisers, research analysts, and market infrastructure institutions.
- Related party transactions: Thresholds revised for shareholder approval requirements
Sebi said the package of reforms would deepen capital markets, attract more global and domestic capital, and improve governance standards
